Don’t Let Headlines Dictate Your SIP: Lessons from the Iran-Israel Ceasefire
By Akhil Chugh
Date June 29, 2025
When the world watches conflicts unfold, the stock markets often reflect that anxiety. The recent Iran-Israel ceasefire brought some relief to global markets, but for many investors, such headlines can still cause confusion and emotional reactions.
At Net Brokers, we believe it is crucial to guide our clients through these emotions and remind them: SIPs (Systematic Investment Plans) are built for consistency, not crisis response.
How Global Tensions Influence Markets
During the initial stages of the Iran-Israel conflict in early 2025:
- Crude oil prices jumped over 12% in just 10 days, raising fears of inflation and hurting Indian import bills.
- The Nifty 50 dipped nearly 3.5%, with energy and metals seeing the biggest impact.
- Foreign Portfolio Investors (FPIs) pulled out nearly $1.2 billion in a week, creating short-term volatility.
But within days of the ceasefire:
- Crude stabilized around $67.4/barrel, down from its spike of $92.
- Indian indices rebounded, with Nifty 50 regaining over 2%.
- FPIs resumed inflows demonstrating clarity and stability in the region.
What History Tells Us
Historical analysis proves that markets often recover strongly after geopolitical shocks
The Power of Staying Invested
SIPs are designed to ride out volatility. By investing a fixed amount regularly, investors benefit from rupee cost averaging, buying more units when markets dip and fewer when they rise.
How Consistency Rewards Investors:
Consistency is the cornerstone of long-term wealth creation. This table illustrates how staying committed to a monthly SIP of ₹60,000 can result in significant corpus growth over time.
This clearly demonstrates that the longer you stay invested, the greater the compounding effect. Even if market conditions fluctuate in the short run, the power of compounding and disciplined SIPs help build substantial wealth in the long run.
Key Takeaway: Emotions Are Expensive
When you react to headlines, you may end up selling low and buying high. SIPs prevent this behavioural trap by enforcing discipline. Remember:
- Short-term noise is just that: noise.
- Geopolitical tensions fade; long-term growth doesn’t.
- Wealth is built with patience, not panic.
Conclusion
Whether it’s wars, elections, or oil price spikes, the markets will always have reasons to fluctuate. But SIPs give investors a way to participate without guessing the right time. The Iran-Israel ceasefire is another reminder: stay the course, trust the process.
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